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April 19, 2018

State-federal concerns could dim FERC's landmark storage order

  • Government
  • Agency
  • Energy

Utility Dive – The promise of the Federal Energy Regulatory Commission’s Order 841 as a vehicle to accelerate the growth of energy storage could be dimmed or at least slowed down by pushback from state and utility interests.

Several organizations have filed requests for rehearing or clarification on the order, which aspires to remove barriers that could inhibit the participation of energy storage in the capacity, energy and ancillary services markets operated by regional transmission organizations (RTOs) and independent system operators (ISOs).

The order, issued in mid-February, directs RTOs and ISOs to come up with new tariffs that would allow energy storage resources to provide multiple electricity market services.

FERC has sole jurisdiction over the wholesale markets of RTOs and ISOs, but in the Notice of Proposed Rulemaking that resulted in Order 841, FERC defined “electric storage resource” as all types of electric storage technologies regardless of “whether the resource is located on the interstate grid or on a distribution system.”

That definition touched a nerve. A range of entities have expressed concerns that FERC’s definition opens the potential for federal overreach into the domain of state regulation.

Read more at Utility Dive.

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